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Australia Loyalty Programs Market Intelligence Report 2022: BNPL Firms are Launching Rewards Program to Boost Customer Loyalty - ResearchAndMarkets.co

Published : Thursday, May 12, 2022, 12:28 pm
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DUBLIN--(BUSINESS WIRE)--The "Australia Loyalty Programs Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.


Loyalty Programs Market in Australia is expected to grow by 12.2% on annual basis to reach US$ 4139.7 million in 2022.

In value terms, the Loyalty Programs Market in Australia has recorded a CAGR of 12.6% during 2017-2021. The Loyalty Programs Market in Australia will continue to grow over the forecast period and is expected to record a CAGR of 11.7% during 2022-2026. Loyalty Programs Market in the country will increase from US$ 3691.1 million in 2021 to reach US$ 6452.3 million by 2026.

In 2022, customer loyalty and rewards programs are expected to be more diverse than ever before. Apart from traditional banking institutions that are offering regular credit card customers with a range of valuable benefits, businesses in the beauty segment, food service channels, and mobility firms are also innovating and launching loyalty and rewards programs to attract new customers and build loyalty with the existing ones in Australia.

Notably, the growing usage of loyalty and rewards programs among consumers in Australia has also prompted businesses, large and small, to launch their programs over the last three to four years. According to the Q1 2022 Global Loyalty and Rewards Market Survey, around 49.5% of the consumers stated that they would be interested in signing up for a local business loyalty program if the businesses offer the type of programs they want. This shows the growing demand for loyalty and rewards programs among Australians.

Over the last few quarters, several big and small brands have entered into the loyalty and rewards segment in the midst of the growing popularity among consumers in Australia. However, some of the key players that have been driving the market growth in the country include BP, Comarch, Qantas, Airwallex, and My Rewards, among several others.

Apart from these, several new players, especially from the buy now pay later industry, have entered into the loyalty and rewards program segment. Notably, both Klarna and Zip have announced the launch of their loyalty programs in Australia. The publisher expects the entry of these payment industry disruptors in the loyalty and rewards segment to further drive innovation and growth in the Australian market over the next two to three years.

BNPL firms are launching rewards program to boost customer loyalty in Australia

The buy now pay later (BNPL) industry has disrupted the digital payment industry over the last three to four years. The deferred payment business model has gained widespread popularity among consumers globally, including in Australia. However, to promote on-time payment among consumers, these BNPL providers are offering rewards to customers. For instance,

  • Klarna, one of the leading BNPL players globally, launched its rewards program in 2020. Notably, the rewards program offered by the firm lets consumers earn points when they make repayments on time. Consumers can then redeem these points at brands in the Klarna app. Moreover, the BNPL firm has also introduced Missions - small tasks - which lets users earn points.
  • Along with Klarna, Zip, the Australia-based BNPL service, is also using its app to boost customer and merchant loyalty. Notably, the firm launched a feature that allows merchants to showcase their deals on the home screen of the Zip app, thereby allowing consumers to benefit from the deals while boosting their spending through Zip.

Fashion retailers are launching loyalty programs to expand their consumer base in Australia

In Australia, 12.2 million consumers make purchases that earn rewards. In the midst of this growing trend among consumers to purchase from brands that offer loyalty and rewards programs has resulted in several brands launching their own loyalty programs over the last four quarters.

  • In March 2021, Adore Beauty, the Australian online beauty retailer, announced that it had launched its first loyalty program, Adore Society. The loyalty program will reward members who will get personalized items that will be based on their purchasing history. Apart from this, the program will also offer other perks, including priority access to new product launches, birthday gifts, promotions and invitations, competitions to launch masterclasses and events.

Digital banks are forging strategic alliances to launch differentiated loyalty programs

In order to differentiate their business model beyond easy use interface and low fees, digital banks are looking to the loyalty program, which is also expected to help them in growing their revenue and market share in Australia. For instance,

  • In April 2021, Virgin Money Australia, the digital banking provider, announced that it has partnered with Ascenda, the global loyalty technology firm, to launch the digital bank loyalty program in Australia. The program allows customers to use their points for purchasing online gift vouchers from various leading retailers.
  • Notably, the loyalty program offers eight Virgin Money points per transaction on direct debit, BPAY, and everyday purchases. The digital bank has partnered with nearly 100 earn and redemption partners, such as THE ICONIC, Menulog, and HelloFresh. Over the next few months, the firm is expected to work with the partners to create new and relevant offers for its users.

Scope

Australia Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators, 2017-2026

Australia Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains, 2017-2026

  • Loyalty Schemes
  • Loyalty Platforms

Australia Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type, 2017-2026

  • Point-based Loyalty Program
  • Tiered Loyalty Program
  • Subscription Loyalty Program
  • Perks Loyalty Program
  • Coalition Loyalty Program
  • Hybrid Loyalty Program

Australia Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2017-2026

  • In-Store
  • Online
  • Mobile

Australia Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors, 2017-2026

  • Retail
  • Financial Services
  • Healthcare & Wellness
  • Restaurants & Food Delivery
  • Travel & Hospitality (Cabs, Hotels, Airlines)
  • Telecoms
  • Media & Entertainment
  • Others

Australia Loyalty Spend Market Size and Future Growth Dynamics by Retail, 2017-2026

  • Diversified Retailers
  • Department Stores
  • Specialty Stores
  • Clothing, Footwear & Accessories
  • Toy & Hobby Shops
  • Supermarket and Convenience Store
  • Home Merchandise
  • Other

Australia Loyalty Spend Market Size and Future Growth Dynamics by Accessibility, 2017-2026

  • Card Based Access
  • Digital Access

Australia Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2017-2026

  • B2C Consumers
  • B2B Consumers

Australia Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026

  • Software
  • Services

Australia Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms, 2017-2026

  • Custom Built Platform
  • Off the Shelf Platform

Australia Loyalty Spend Market Size and Forecast by Consumer Demographics & Behavior, 2021

  • By Age Group
  • By Income Level
  • By Gender

For more information about this report visit https://www.researchandmarkets.com/r/1cqs0e.


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